When a monthly student loan payment is provided on the credit report, that amount may be used for qualifying purposes.
If the credit report does not reflect the correct monthly payment, the monthly payment that is on the student loan documentation (the most recent student loan statement) may be used to qualify the Borrower.
If the credit report does not provide a monthly payment, it must be determined using one of the options below:
- If the Borrower is on an income-driven payment plan, student loan documentation may be obtained to verify the actual monthly payment is $0. The Borrower may then qualify with a $0 payment.
- For deferred loans or loans in forbearance, the following must be calculated:
- A payment equal to 1% of the outstanding student loan balance (even if this amount is lower than the actual fully amortizing payment); or
- Fully amortizing payment using the documented loan repayment terms.
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